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UOB KAYHIAN |
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Banking – Singapore 1Q24 Results Preview: Softer NIM But Resilient Asset Quality
The steep decline in 3M HIBOR could shave off 4-6bp from NIM in 1Q24 as Hong Kong dollar-denominated loans accounted for 11% and 13% of total loans respectively for DBS and OCBC. Singapore banks are expected to deliver steady net profits of S$2,486m for DBS (-3% yoy but +10% qoq) and S$1,824m for OCBC (-3% yoy but +12% qoq) in 1Q24, supported by resilient asset quality. Maintain OVERWEIGHT. Our top picks are DBS (BUY/Target: S$43.25) followed by OCBC (BUY/Target: S$18.15).
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Plantation – Malaysia Mar 24: Higher Palm Oil Exports From Malaysia
Malaysia's palm oil inventory came in lower than market estimates, thanks to strong exports despite production increasing mom. We attribute this to the limited palm oil exports from Indonesia due to lower production and strong demand domestically. We expect CPO prices to continue to be supported as we reckon that inventory in Apr 24 would remain low and supply tight in the market. Maintain OVERWEIGHT.
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CGS CIMB |
CGS CIMB |
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Elite Commercial REIT Broadening investment strategy
■ ECR expanded its investment mandate to include living sector properties. ■ The mandate expansion would enable ECR to future-proof and grow its portfolio, with an initial focus to extract value from its existing assets. ■ Reiterate Add rating, with an unchanged TP of £0.38.
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Utilities - Overall NETR policies gaining traction
■ The government announced today that the Energy Exchange Malaysia (ENEGEM) has now been officially established. ■ This further adds to the good progress being made on initiatives under the NETR, which should help address investors’ qualms on its implementation. ■ Maintain Overweight on Malaysia Utilities.Top picks:Tenaga, YTLP, Malakoff
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